Key Takeaways
- • Point72 Asset Management, Steve Cohen's $15 billion flagship fund, declined approximately 2% in September 2019, reducing year-to-date returns through September to just over 10%.
- • Balyasny Asset Management posted a steeper loss of 1.4% in September, paring year-to-date performance to approximately 9%, signaling broader headwinds across the multi-strategy sector.
- • Millennium Management (Izzy Englander) and Citadel (Ken Griffin's $32 billion flagship) experienced more modest September declines of 0.5% and 0.2%, respectively, with full-year 2019 returns of approximately 6.5% and 14%.
- • Sweeping market shifts in September blindsided major multi-strategy hedge fund managers, with the largest funds collectively experiencing losses despite solid year-to-date performance prior to the month.
Summary
Major multi-strategy hedge funds experienced notable September losses as market volatility disrupted previously solid 2019 performance, according to Bloomberg reporting dated October 17, 2019. Point72 Asset Management, the $15 billion fund led by billionaire Steve Cohen, fell approximately 2% during the month, trimming year-to-date gains through September to more than 10%. The decline represents a material reversal following months of stronger performance, though the fund remains solidly positive for the year.
Balyasny Asset Management reported the steepest losses among the group, declining 1.4% in September and reducing year-to-date returns to approximately 9%. The setback signals that even established, well-capitalized multi-strategy platforms faced challenges navigating the month's "sweeping market shifts," according to people familiar with the funds' performance. Izzy Englander's Millennium Management declined 0.5% in September, while Ken Griffin's Citadel posted a more modest 0.2% loss in its flagship fund, bringing full-year 2019 returns to approximately 6.5% and 14%, respectively.
The synchronized decline across these four industry leaders—collectively managing over $70 billion in assets—underscores the sector-wide impact of September's market volatility. Despite the monthly losses, most funds maintained respectable year-to-date performance through September, with only Citadel's 6.5% return appearing materially below historical multi-strategy benchmarks. The losses suggest that volatility-driven market dislocations affected even highly diversified, multi-manager platforms that typically provide downside protection through strategy diversification.
Balyasny Asset Management reported the steepest losses among the group, declining 1.4% in September and reducing year-to-date returns to approximately 9%. The setback signals that even established, well-capitalized multi-strategy platforms faced challenges navigating the month's "sweeping market shifts," according to people familiar with the funds' performance. Izzy Englander's Millennium Management declined 0.5% in September, while Ken Griffin's Citadel posted a more modest 0.2% loss in its flagship fund, bringing full-year 2019 returns to approximately 6.5% and 14%, respectively.
The synchronized decline across these four industry leaders—collectively managing over $70 billion in assets—underscores the sector-wide impact of September's market volatility. Despite the monthly losses, most funds maintained respectable year-to-date performance through September, with only Citadel's 6.5% return appearing materially below historical multi-strategy benchmarks. The losses suggest that volatility-driven market dislocations affected even highly diversified, multi-manager platforms that typically provide downside protection through strategy diversification.
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